TAX AND COMPLIANCE: FICA PROTECTIVE CLAIMS
FICA Protective Claims
File a Protective Claim Now and Preserve Your Right for a Refund
If your organization paid FICA taxes on severance pay in 2010, you may be eligible for a refund. The U.S. Supreme Court hearing for the United States vs. Quality Store case was heard on January 14, 2014, and a decision may not be issued until summer.
The outcome of the case may determine whether employers are eligible for a refund of FICA taxes remitted on certain types of severance pay made in prior tax years.
File Your Protective Claim Early—It’s Fast and Easy
Businesses who believe they may be eligible for a refund of 2010 taxes must file a protective claim with the IRS no later than April 15, 2014, due to the statute of limitations. With some estimates placing the overall value of the refund for FICA taxes on severance as high as $1 billion , it may be well worth your time to file a claim right away.
ADP is Here to Help
ADP encourages businesses to file before the April 15 deadline to allow for IRS processing times. If you would like assistance to help preserve your right to a potential refund, ADP in conjunction with the third-party tax practitioner has put the tools in place to help you file a protective claim.
ADP’s Protective Claims Services includes:
- Filing of 2010 tax year protective claim (IRS Form 941-X)
- Tracking of the claim and IRS responses
- Following the progress of ongoing Supreme Court litigation
- Assisting with the final refund calculation for all applicable tax years (in conjunction with tax practitioner), if applicable,
- Assisting with outreach to qualified employees
If you feel your organization is potentially due a FICA Tax refund, ADP can help you file now.
IRS petition for writ of certiorari to US Supreme Court, May 31 2013, P. 7